Malaysia halts construction of $20bn East Coast Railway Link project

Financial news agency The Edge first reported the decision referring to a letter sent by MRL to the chief contractor of the project, CCCC, instructing the suspension of work with immediate effect. In the letter, MRL cited ‘national interest’ among other reasons to halt the project.

The 688km-long East Coast Railway Link, a part of China’s Belt and Road initiative, aimed at connecting the eastern coast of the Malaysia Peninsula with strategic shipping routes in the west.

According to Reuters, Malaysia is expected to re-negotiate the terms of the agreement with China in an attempt to reduce the associated costs of building this rail link.